– Demand for staff and placements both continue to rise sharply
– Series record increase in average starting salaries recorded
…helps drive starting salaries up at series record pace…
…as demand for staff continues to grow…
Latest vacancy data indicated faster increases in the demand for both permanent and temporary staff during June. Growth was led the private sector, with demand here continuing to rise at a rate that comfortably outstripped those seen in the public sector.
…and placements rise
Temporary/contract staff billings in contrast increased at the sharpest pace for five months.
Regional and sector variation
Engineering workers were also the most in-demand type of temporary staff during June, followed by Blue Collar and then Construction. Demand for temporary staff is rising at stronger rates across all categories when compared to 12 months ago, with the exception of Nursing/Medical/Care.
“June saw record growth in starting salaries and yet another monthly increase in the number of people securing a permanent job.
“However, this month sees the number of workers available to fill vacancies plummet to an all-time low, in particular across business development and sales roles that are vital to boosting bottom lines. There are also persistent shortages across IT and engineering, which are becoming a serious threat to economic growth.
“The message to UK businesses is that it is crucial to sharpen up hiring procedures in an increasingly candidate driven market. The message to government is that we need to reform the visa system to satisfy immediate demand for skills, whilst stepping up measures to boost the UK skills base for the long-term.”
“Once again employers seem ready to ‘splash the cash’ in what appears to be a desperate attempt to lure skilled staff from competitors. Yet despite offering starting salaries at a rate that has not been seen during the survey’s 17 year lifetime, it is clear that candidates are not easily swayed. As consumers they may be facing rising house prices and struggling to build financial reserves because of low interest rates, but the desire for extra disposable income is not yet translating into a generation of employees who are only loyal to their monthly pay cheque.
“It’s a message employers would do well to take to heart as, although many might argue that by offering higher pay packets, they are showing market confidence, the truth is that continued starting salary growth is unrealistic and unsustainable over the long term. Ultimately candidates are also suggesting this by voting with their feet, because we have also just witnessed the biggest fall in candidate availability for 17 years. Perhaps this means that the productivity gap is being replaced with another chasm – a vacancy vacuum – and one that is unlikely to be resolved until employers recognise that, for staff, remuneration is about much more than take home pay.”